Due to its many benefits, businesses, from large corporations to small enterprises, are converting some or all of their data and systems to cloud computing services to increase their competitiveness.

So, what does cloud accounting offer a business that is used to traditional accounting systems?

No Need to Rip and Replace
Cloud accounting can run on existing your computer hardware. This means that you can switch from traditional to cloud accounting without any costly upgrades or additions to your existing infrastructure.

Lower Operational Costs and Predictable Overheads
Cloud accounting offers a simple and easy-to-understand pricing scheme that allows for easy month-by-month budgeting or annual budgeting to get more attractive offers. Furthermore, the expenses on cloud accounting are PIC. Claimable. You no longer need to spend massive capital on assets that will depreciate every month. This will lead to a reduction in rack space, power consumption, and IT overheads. You will gain by having lower installation, maintenance, hardware, upgrade, and support costs. These savings are significant for small businesses, and they can be redirected and put into other business-enhancing areas.

Accessibility and Flexibility
With cloud accounting, you can access and modify your accounting data and issue invoices from any number of devices in any location. Usually, if something has been saved on a personal computer, you can only access the file from that particular computer. This is restrictive. Instead, you and your employees can gain access from anywhere, at any time of the day, making everybody more productive. If you use cloud accounting, your team can access to your accounting data even when not physically in the office. This means that your office space can be smaller, which of course means lower rent!

Better Collaboration
Improves collaboration between you, your team, and your accountant.

Security
Have you ever lost your laptop or had it stolen? If you store all of your data on a laptop or mobile device, this information can be easily stolen and accessed. However, if you use cloud accounting, your laptop merely becomes a device through which you access your work – the data itself cannot be stolen with the laptop because you require your user name and password to get into the cloud where your accounting data is stored. Xero has been available greater than 99.8% of the time. The system has redundant servers and a self-correcting error detection program. Xero’s employees, assisted by automated tools monitor service performance 24/7, 365 days a year. The system is housed in Data Centers, which is monitored 24/7 by full time security staff, CCTV surveillance, and alarms.

Support, Automatic Updates, and Server Maintenance
When you go on cloud accounting software, you never have to worry about software upgrades or forgetting to backup your accounting data. All this are done automatically and best of all at no extra charge to you!